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Form of Bill of Sale

payment, sum, act, chattels and time

FORM OF BILL OF SALE.

• This Indenture made the day of , between A. B. of of the onepart and C. D. of of the other part. witnesseth that in consideration of the sum of £ now paid to A. B. by C. D., the receipt of which the said A. B. hereby acknowledges [or whatever else the con sideration may be], he the said A. B. doth hereby assign unto C. D., his executors, administrators, and assigns, all and singular the several chattels and things specifically described in the Schedule hereto annexed by way of security for the payment of the sum of , and interest thereon at the rate of per cent. per annum [or what ever else may be the rate]. And the said A. B. doth further agree and declare that he will duly pay to the said C. D. the prin cipal sum aforesaid, together with the interest then due, by equal payments of -f„ on the day of [or what ever else may be the stipulated times or time of payment]. And the said A. B. doth also agree with the said C. D. that he will [here insert terms as to insurance, payment of rent, or otherwise, which the parties may agree to for the maintenance or defeasance of the security].

Provided always, that the chattels hereby assigned shall not be liable to seizure or to be taken possession of by the said C. D. for any cause other than those specified in Section 7 of the Bills of Sale Act (1878) Amendment Act, 1882.

In witness whereof the said A. B. hath hereunto set his hand and seal the day and year first above written.

A. B.

Signed and sealed by the said A. B. in the presence of me, E. F.

[Add witness's name, address, and de scription.]" The schedule must specifically describe the chattels which are assigned. It has been held. in the case of a bill of sale void because it was not drawn in accordance with the legal form, that the covenant in the bill to pay principal and interest was also void.

A bill of sale given in consideration of any sum under 90 shall be vcid (Section 12 of the above Act).

From the above form of bill of sale it will be seen that the amount which it is to secure must be a specified sum, and not, for example, a fluctuating balance.

A bill of sale must be registered within seven clear days after its execution ; and requires re-registration once at least every five years.

An assignment of a registered bill of sale does not require registration. Any person is entitled to search the register on payment of a fee of one shilling.

The grantee of a bill of sale may seize the chattels thereby assigned if the grantor makes default in payment of the sums secured by the instrument, or becomes bankrupt, or suffers any of the goods to be distrained for rent, rates, or taxes. or fraudu lently removes any of the goods, or fails, without reasonable excuse, to produce to the grantee his last receipts for rent, rates and taxes, or if execution has been levied against the grantor's goods under any judgment at law (Section 7, Bills of Sale Amendment Act, 1882).

If two bills of sale are given upon the same property, priority is decided according to the order of the date of their registration.

A bill of sale is void if the grantor becomes bankrupt within two years after the date, or at any time within ten years unless the claimants can prove that the grantor was solvent at the time he gave the bill of sale. (See SETTLEMENTS-SETTLOR BANKRUPT.) As to the stamp duty, the Stamp Act, 1891, says :—